Correlation Between News Corp and Kuke Music
Can any of the company-specific risk be diversified away by investing in both News Corp and Kuke Music at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining News Corp and Kuke Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corp A and Kuke Music Holding, you can compare the effects of market volatilities on News Corp and Kuke Music and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in News Corp with a short position of Kuke Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Kuke Music.
Diversification Opportunities for News Corp and Kuke Music
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between News and Kuke is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding News Corp A and Kuke Music Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuke Music Holding and News Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on News Corp A are associated (or correlated) with Kuke Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuke Music Holding has no effect on the direction of News Corp i.e., News Corp and Kuke Music go up and down completely randomly.
Pair Corralation between News Corp and Kuke Music
Given the investment horizon of 90 days News Corp is expected to generate 2.66 times less return on investment than Kuke Music. But when comparing it to its historical volatility, News Corp A is 5.55 times less risky than Kuke Music. It trades about 0.07 of its potential returns per unit of risk. Kuke Music Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Kuke Music Holding on September 14, 2024 and sell it today you would lose (16.05) from holding Kuke Music Holding or give up 32.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Corp A vs. Kuke Music Holding
Performance |
| Timeline |
| News Corp A |
| Kuke Music Holding |
News Corp and Kuke Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Kuke Music
The main advantage of trading using opposite News Corp and Kuke Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Kuke Music can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kuke Music will offset losses from the drop in Kuke Music's long position.| News Corp vs. Marcus | News Corp vs. Liberty Media | News Corp vs. Warner Music Group | News Corp vs. Fox Corp Class |
| Kuke Music vs. Liberty Media | Kuke Music vs. Atlanta Braves Holdings, | Kuke Music vs. News Corp B | Kuke Music vs. News Corp A |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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